Two Bottles of Over-The-Counter Pain Reliever Sit Side-By-Side in a Grocery

question 593

Multiple Choice

Two bottles of over-the-counter pain reliever sit side-by-side in a grocery store: Advil (a brand name) sells for $5.00, while Feel Better (not a brand name) sells for $2.50. In a typical day the store sells some of each type of pain reliever, which suggests that

• A)no rational consumer would spend twice as much for Advil as he would for Feel Better.
• B)some consumers must perceive that Advil is a higher quality product.
• C)Advil has no incentive to maintain the quality of its product just because of the Advil brand name.
• D)Advil spends money on advertising to reduce competition in the market.

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Definitions:

Discrimination

The ability or practice to distinguish and differentiate between items or conditions, often leading to unfair treatment based on specific characteristics.

Milgram

Refers to Stanley Milgram, a psychologist known for his experiment on obedience demonstrating people's willingness to follow orders.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or expectations, often to fit in or be accepted by others.

Kelley

Often associated with George A. Kelley's cognitive theory of personality which emphasizes personal construct psychology, focusing on how people's unique perceptual constructs shape their reality.